Bear Cycle in Eurostoxx 50 Futures Remains in Play

A bear cycle in Eurostoxx 50 futures remains in play and the recent recovery is considered corrective. Price has recently pierced key support at 4187.00, the Aug 18 low and a bear trigger. A clear break of this level would strengthen bearish conditions and open 4177.40 next, a Fibonacci retracement. Key resistance has been defined at 4358.00, the Aug 30 high. Initial firm resistance is seen at 4278.60, the 20-day EMA. For now, gains in the E-mini S&P contract are considered corrective and a bear cycle remains in play. Key resistance has been defined at 4597.50, the Sep 1 high where a break is required to reinstate the recent bullish theme. A stronger resumption of weakness would signal scope for a move towards the key support and bear trigger at 4397.75, the Aug 18 low. Clearance of this support would strengthen a bearish case.

• Japan's NIKKEI closed lower by 69.85 pts or -0.21% at 32706.52 and the TOPIX ended 1.27 pts lower or -0.05% at 2378.64.
• Elsewhere, in China the SHANGHAI closed lower by 13.992 pts or -0.45% at 3123.067 and the HANG SENG ended 16.67 pts lower or -0.09% at 18009.22.
• Across Europe, Germany's DAX trades lower by 67.82 pts or -0.43% at 15655.57, FTSE 100 lower by 6.22 pts or -0.08% at 7523.83, CAC 40 down 32.82 pts or -0.45% at 7223.57 and Euro Stoxx 50 down 24.74 pts or -0.58% at 4219.8.
• Dow Jones mini down 31 pts or -0.09% at 34640, S&P 500 mini down 2.25 pts or -0.05% at 4463.25, NASDAQ mini down 3.25 pts or -0.02% at 15303.75.